Dubai’s First IPO Since November May Come From Daman InvestmentsArif Sharif and Sarmad Khan
Daman Investments PJSC plans to raise about 700 million dirhams ($191 million) in an initial public offering in June, according to Emirates Investment Bank PJSC, which will manage the sale.
The Dubai-based asset manager will sell 55 percent of its equity capital, said Husam Kutaifan, managing director for investment banking at Emirates Investment Bank. The IPO plan comes amid an 18 percent rally in Dubai’s equity benchmark this month, after two quarters of declines.
“The market is showing signs of a recovery,” Kutaifan said in an interview. The regulator has approved the valuation and may give its assent on the offer timing “in about two weeks,” he said.
The DFM General Index slumped into bear territory at the end of last year as global crude prices plunged. Daman’s IPO may become the first in the emirate since Dubai Parks & Resorts PJSC raised 2.53 billion dirhams in November.
Daman Investments will spend a third of the IPO proceeds on its brokerage business and another third on real estate, Chairman Shehab Gargash said in March. The rest would be used for starting new funds, Gargash said without being more specific.